NFTs have become the latest must-have for celebrities and the super-rich, with some changing hands for millions of pounds, but now PayPal is strengthening its regulations on the people who sell them
Image: PA image)
PayPal is preventing the sale of non-fungible tokens, the latest digital fad (NFT), by removing seller protection for sales of more than $10,000 (£7,456.35).
NFT is a kind of digital artwork has become the latest craze for celebrities and the super-rich – and some sell for millions of pounds.
NFTs are proprietary digital files, such as artwork or music.
Often times, digital files can be easily copied, making them less ‘valuable’ than physical files – like the difference between owning a digital photograph of the Mona Lisa and real photos.
But because the NFT is created using Blockchain, a secure digital ledger, anyone who owns it can prove it’s the ‘original’ of its kind.
@ BoredApeYC / Twitter)
That super-exclusivity has led to NFT becoming a must-have – with prices skyrocketing.
The most expensive NFT sold for a whopping $91.4 million (£68.43 million).
But now PayPal has said that NFTS sellers using its service will have less protection as of May.
In an email to its users, PayPal said that from May 6, it will “modify PayPal’s Seller Protection program to expand the list of ineligible items to include certain Codes. non-infected notices (NFTs) with a transaction volume of more than $10,000 USD”.
PayPal Seller Protection, as the name suggests, provides sellers with defense if a buyer falsely claims that they did not receive an item or if payment was made by a hacked account.
PayPal has not explained the crackdown, but NFTs are involved in fraudulent transactions.
Earlier this month HM Revenue & Customs arrested three NFTs in a suspected £1.4m VAT fraud case.
PayPal also said it is rethinking its options when users do anything illegal using its sales platform.
Retired England international John Terry has advertised baby ape cartoons, some of which feature silverware – including the English Premier League and Champions League title.
And the Premier League – who are reportedly considering launching their own NFT in the near future – are concerned about using its assets in artwork shared by Terry.
The Premier League Cup is trademarked and may not be used for commercial purposes without permission.
Chelsea are also investigating the use of their badge and intellectual property in one of the cartoons, as reported by The Athletic.
UEFA, meanwhile, is also keeping a close eye on the story.
“UEFA takes the protection of its intellectual property very seriously and we are investigating this matter further,” read a statement issued to The Mirror. Berry’s endorsement is called “Ape Kids Club” and has over 109,000 followers on Twitterconsists of West Ham Ace Declan Rice.
https://www.mirror.co.uk/money/major-paypal-changes-coming-including-26349942 Big PayPal changes coming - including no seller protection for the latest fad